Why the next decade will foil financial plans
1SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr I received a “financial plan” from an individual wanting me to review it with respect to his personal retirement goals. The plan was generated by one of the many “off the shelf” software packages that takes all the inputs of income, assets, pensions, social security, etc., and then spits out assumptions of future asset values and drawdowns in retirement.The problem is that the return assumptions were grossly flawed.In all of these plans, it is assumed individuals will have a rate of return of somewhere between 5-10% annually heading into retirement, and then 4-8% thereafter. The first major flaw in the plan is the “compounding” of annual returns over time which never happens.The second, and most important, is the future expectation of returns for individuals over the next 10-20 years.This second point is what I want to address today. continue reading »
continue reading » 30SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr CUNA announced Friday that the association will file a lawsuit against Equifax to protect credit unions and their members from harm as a result of the Equifax data breach.“Equifax needs to be held accountable for this massive data breach that gave hackers access to the personally identifiable information of 143 million Americans and the credit card information of 209,000 people,” said Jim Nussle, president/CEO of CUNA. “Equifax’s disregard for protecting this highly sensitive data means credit unions are left bearing the brunt for damages in replacing members’ cards payment cards, covering fraudulent purchases and taking protective measures to reduce risk of identity theft and false loans.”Credit unions and other financial institutions will likely bear long-term costs as a result of the breach, including canceling and reissuing untold number of compromised cards, reimbursing consumers for fraudulent charges, increasing fraudulent activity monitoring, taking appropriate action to mitigate the risk of identity theft and fraudulent loans, sustaining reputational harm, and notifying consumers of potential fraudulent activity.
Nineteen-year-old Warren Tanoesoedibjo, son of business tycoon Hary Tanoesoedibjo, was named the winner of an electric motorcycle owned and signed by President Joko “Jokowi” Widodo after he agreed to match the winning bid of Rp 2.55 billion (US$178,037).Warren had been the second-highest bidder in the auction, which was held during a virtual charity concert on May 17.The initial winner, a Jambi construction worker named M. Nuh, failed to pay for the motorcycle, saying he was unaware that he was participating in an auction. “He thought he had won [the motorcycle] as a gift at the charity event,” Jambi Police chief Insp. Gen. Firman Santyabudi said on Thursday.The virtual charity concert organizer, Olivia Zalianty, then contacted Warren to see if he still wanted to buy the motorcycle.“It turned out he was only 19 years old and said he really wanted to buy the motorcycle with the President’s signature,” Olivia said in a press conference on Friday. “And he was prepared to buy it for the same price as the winning bid.”Hary, who represented Warren at the press conference, said his son had asked his permission to take part in the auction.“He asked my permission to use his savings for the charity auction. I told him to go ahead if he wished to do so,” Hary said.Topics :